- Breaking: BTC/USD dives below $9,000 amid short-term bulls capitulation.
- The tehcnical picure implies more sell-off is in store.
Bitcoin broke free from a triangle pattern and tested area below $9,000 during early Asian hours. The first digital coin has lost over 3% since the start of Monday and nearly 4% on a day-to-day basis to trade at $8,940 by press time. BTC/USD is moving within a strong bearish trend amid high volatility.
BTC/USD: Technical picture
A strong move below the channel support created by the lower border of the trianglr pattern at $9,260 increased the downside pressure and pushed the coin towards the psychological $9,000. Once this barrier is cleared, the sell-off is likely to gain traction with the next focus on $8,637 (May 25 low and the previous bottom). It is followed by daily SMA200 at $8,200 and psychological $8,000 reinforced by daily SMA100 and 61.8% Fibo retracement for the downside move from February 2020 high.
On the upside, a sustainable move above $9,000 is needed to improve the technical picture and allow for an extended recovery towards the above-said triangle and daily SMA50 at $9,285. However, considering the downward-looking RSI on a daily chart a sustainable bullish momentum looks unlikely at this stage.